Stocks Tumble On Budget Impasse; Michael Kors Takes A Hit

Stocks swept lower early Friday in reaction to a setback on the fiscal cliff and the increased odds for an economic downturn after Jan. 1.

The Nasdaq slumped 1.4%, while the S&P 500 and Dow Jones industrial average slipped 0.9% each.

Volume exploded on quadruple witching expirations of options and futures.

Worries that spending cuts and higher taxes may go into effect increased after House Speaker John Boehner suffered a setback late Thursday. His plan for taxes on those earning more than $1 million a year did not even get to a vote, as Republicans rebelled against any tax increases.

The University of Michigan said consumer sentiment shifted lower in December, as it revised its Consumer Sentiment Index down to 72.9. It was the lowest in at least five months, and well short of analyst forecasts for 75.

Among stocks on the Dow, only Bank of America (BAC) slipped more than 2%, while about 20% of Nasdaq 100 stocks fell 2% or more. The Nasdaq and the S&P 500 remained up more than 1%, so far, for the week.

On the IBD 50, 3D Systems (DDD) and Michael Kors (KORS) dropped more than 4% each in opening trade. SodaStream (SODA) was the only other IBD 50 stock to drop more than 3%. Most quickly began trimming their initial losses.

Michael Kors remained down 4% in heavy trade. The Hong Kong-based fashion designer has been trading sideways since late September, attempting to hold support at its 10-week line as it builds the right side of a base.

See Also

Just six companies are keeping second-quarter earnings growth in positive territory for S&P 500 businesses, which may suggest more softness to come. With 72% of S&P 500 companies having reported their performance in the last calendar quarter, earnings have grown a mere 0.9%. Revenue so far ...

With its stock trading at a 3.5-year low, 3-D printer maker Stratasys (NASDAQ:SSYS) received a rare upgrade Friday. Piper Jaffray analyst Troy Jensen upgraded Stratasys to overweight from neutral, though he also lowered his price target on Stratasys stock to 39 from 42. Stratasys stock was down ...

Continuing to show hard times in the 3D printer market, Stratasys (NASDAQ:SSYS) withdrew its full-year guidance after reporting second quarter earnings Thursday morning. Stratasys reported Q2 revenue of $182.3 million, up 2% from the same quarter a year ago. That was its slowest growth in years, ...

Beleaguered 3D printer maker Stratasys (NASDAQ:SSYS) is expected to report a sharp slowdown in sales with second-quarter earnings Thursday. The consensus estimate is for revenue of $182.3 million, up 2% from the same quarter a year ago but a sharp deceleration from a healthy string of double-digit ...

Two days after Hillary Clinton called for a 700% expansion in solar installations by 2020, No. 1 residential solar installer SolarCity (NASDAQ:SCTY) was set to announce early Tuesday expanded solar financing options for small and midsize businesses. SolarCity says its expanded options will give ...

Stocks showed mild losses around midafternoon Wednesday after the Fed's latest announcement signaled no big changes. The S&P 500 dipped nearly 0.2%, while the Dow Jones industrial average edged down 0.1%. The Nasdaq retreated a fraction. Volume was tracking down from Tuesday's levels across the ...

Stocks wavered and were essentially flat Wednesday afternoon ahead the Fed's policy announcement at around 2:15 ET. The central bank is expected to keep its bond-buying program and leave interest rates unchanged. The Dow Jones industrial average and the Nasdaq were up 0.1% each. The S&P 500 was ...

Stocks got off to a shaky start Wednesday, with early gains turning to a mixed performance, after the Commerce Department estimated that the economy unexpectedly contracted in the fourth quarter. The S&P 500 and the Dow Jones industrial average each dipped 0.1%. The Nasdaq inched a fraction ...

About Investor's Business Daily

Investor’s Business Daily provides exclusive stock lists, investing data, stock market research, education and the latest financial and business news to help investors make more money in the stock market. All of IBD’s products and features are based on the CAN SLIM® Investing System developed by IBD’s Founder William J. O’Neil, who identified the seven common characteristics that winning stocks display before making huge price gains. Each letter of CAN SLIM represents one of those traits.

Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States. *Reflects real-time index prices.